Turbulence In Indonesia Is Manageable For Freeport-McMoRan
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Jul. 26, 9:19 AM
- Freeport McMoRan (NYSE:FCX) -5.5% premarket after posting a wider than expected Q2 loss and a 15% Y/Y drop in revenues to $3.33B, which also missed estimates.
- FCX says its Q2 copper production rose 16% Y/Y to 1.13B recoverable lbs., while average realized prices fell 20% to $2.18/lb.
- Q2 operating cash flows totaled $874M, and FCX foresees full-year operating cash flows at ~$4.5B vs. prior guidance of $4.8B.
- FCX says Q2 capex totaled $833M, and lowers its outlook FY 2016 capex to $3.1B vs. prior guidance of $3.3B.
- Seeking to pare down debt, FCX says it has unveiled more than $4B YTD in asset sales, and plans to launch an at-the-market offering of up to $1.5B of common stock; FCX's consolidated debt totaled $19.3B at the end of Q2 vs. $20.3B at the end of Q1.
Tue, Jun. 28, 9:18 AM| Tue, Jun. 28, 9:18 AM | 1 Comment
Wed, Jun. 15, 2:03 PM
Tue, May 24, 7:58 AM
- Freeport McMoRan's (NYSE:FCX) oil and gas unit agrees to pay $215M to Rowan (NYSE:RDC) to immediately terminate a drillship contract.
- The agreement releases FCX from $300M in further payments under the contract for the ultra-deepwater drillship Rowan Relentless, which has been operating in the Gulf of Mexico.
- RDC also may $30M in additional contingent payments, depending on the average crude oil price over the next 12 months.
- The contract cancellation follows FCX's agreement two weeks ago to pay Noble Corp. $540M, with up to $75M in additional contingent payments, to terminate agreements for two other drillships in the Gulf of Mexico.
- The RDC contract would have ended in June 2017, and the two contracts with Noble had been scheduled to run through July and November 2017.
- FCX +1.5% premarket.
Tue, May 17, 9:13 AM
- Freeport McMoRan (NYSE:FCX) +2% premarket after Jefferies upgrades shares to Buy from Hold with a $15 price target, raised from $12.50, saying the company is making asset sales at high multiples.
- Jefferies says FCX is making accretive asset sales and is entering a period of strong free cash flow on lower costs and capex.
- The firm believes now is the time to buy FCX after a 21% pullback over the past two weeks; shares finished more than 6% higher yesterday as Cowen analysts raised their stock price target to $15.
- Now read Freeport McMoRan: Yard sale
Mon, May 16, 9:55 AM
- Freeport McMoRan (FCX +7.4%) pops higher at the open after Cowen analysts raise their stock price target to $15 from $10, citing FCX's strong portfolio of copper assets and management's efforts to rightsize the balance sheet.
- The firm believes FCX is in a much better position than several months ago, with more moves likely to come.
- Separately, the chairman of Codelco, the world's biggest copper exporter, says the company may be interested in acquiring FCX's El Abra copper mine in Chile.
- FCX owns a 51% stake in El Abra, and 49%-owner Codelco would be interested in the asset "at the right price," chairman Oscar Landerretche told a Chilean newspaper over the weekend.
- Now read Freeport McMoRan: Finally there's light at the end of the tunnel
Fri, May 13, 10:57 AM
- Freeport McMoRan (FCX -2.2%) may be hiding the true value of the $2.65B sale of its majority stake in the Tenke copper project, says the mines minister for the Democratic Republic of Congo, adding to recent statements by Congolese government officials that they were not informed in advance of the sale.
- The minister appears to believe FCX is hiding the real earnings from the deal so it can avoid paying taxes.
- Tenke is one of the world's largest copper mines, producing 203.7K metric tons of copper cathode in 2015 as it paid $379M in taxes and fees.
- Now read Freeport McMoRan: Sell in May and go away
Tue, May 10, 2:27 PM
- Freeport McMoRan's (FCX +3.7%) oil and gas unit agrees to pay $540M to cancel contracts for two Noble Corp. (NE +2.8%)drillships, part of its effort to cut costs as it also seeks to sell some oil and natural gas assets.
- FCX can make the $540M payment through a combination of cash, stock and as much as $200M in near-term NE bonds; NE also can receive further payments of $25M and $50M depending on oil prices over the next 12 months.
- NE expects to save more than $100M by cutting the number of workers on the drillships and parking them long term, but the rigs were each earning more than $600K/day.
- Now read Noble Corp.: Freeport McMoRan terminates the 2 drillships Noble Sam Croft and Noble Tom Madden
Mon, May 9, 2:33 PM
- Freeport McMoRan (FCX -10.3%) is the day's biggest decliner on the S&P 500 after selling its stake in the Tenke Fungurume copper mine in the Democratic Republic of Congo to China Molybdenum for $2.65B, as the deal highlights the company's desperation and may have come as a surprise, considering Tenke was viewed as one of FCX's core copper assets.
- FCX's sale of Tenke, which follows its pending disposal of a stake in the Morenci copper mine in Arizona for $1B and a dividend suspension, may leave investors wondering what's next, Bloomberg's Gillian Tan writes.
- But at least FCX appears to have obtained a fair price in the deal; Jefferies analysts say FCX got "a good price for the asset, and it significantly improves their liquidity and their balance sheet."
- Now read Freeport's bull run is here
Fri, Apr. 29, 10:43 AM
- Freeport-McMoRan (NYSE:FCX) is up 10.5% on heavy volume following last night's news of labor peace at Chile's El Abra mine.
- The company has a 51% stake at the mine, at which it scaled back operations last year and laid off 650 workers.
- Shares have now risen more than 23% since Tuesday's news of a smaller-than-expected quarterly loss, and word that the company was going to cut 25% of its oil and gas workforce.
- The company will organize into a new management structure in an effort to cut costs.
- Now read Freeport-McMoRan: The Company Is Proving Its Mettle »
Tue, Apr. 26, 10:32 AM
- Indonesia's government proposes a value of ~$630M for a 10.64% stake in Freeport McMoRan's (FCX -4.3%) local unit, some two-thirds below the figure the company proposed in January.
- Under an agreement reached with Indonesia in 2014, FCX must sell the government a greater share of its Grasberg copper and god mining complex and invest in domestic processing to win an extension of its operating contract when it expires in 2021; FCX offered in January to sell the stake in its Indonesian operations, including Grasberg, at $1.7B.
- FCX wants to invest $18B to expand its Indonesian operations, including underground mining, but is seeking government assurances first that it will get a contract extension.
- Now read Freeport McMoRan to cut 25% of oil and gas workforce
Fri, Apr. 22, 10:42 AM
- Black Stone Minerals (BSM +2.9%) agrees to acquire a package of oil and gas mineral assets from Freeport McMoRan (FCX +3%) for $102M, in a deal the company says will bolster its presence in the Permian region.
- BSM says the assets include ~1.2M gross mineral acres, 16K net non-participating royalty interests and 11K overriding royalty interest acres in 20 states, concentrated in Texas, Louisiana and Arkansas.
- The assets feature estimated Q4 production of 850 boe/day and estimated proved developed producing reserves of 2M boe as of Dec. 31.
- Now read Black Stone Minerals LP IPO looks hot
Tue, Mar. 15, 9:17 AM| Tue, Mar. 15, 9:17 AM | 4 Comments
Fri, Mar. 4, 12:58 PM
- Vale (VALE +18.3%) and U.S. Steel (X +15.3%) are pacing the biggest weekly rally since 2008 for stocks of mining and metals companies, Bloomberg says as its index of 47 metals, mining and steel producers has racked up a 20% gain this week.
- Vale has rallied nearly 80% this week, as iron ore prices extended a rebound and Brazilian stocks jumped as the latest developments in the federal investigation of vast corruption threaten to topple the Rousseff government.
- Copper suppliers Freeport McMoRan (FCX +12.4%), Teck Resources (TCK +10.3%) and First Quantum Minerals (OTCPK:FQVLF +11.4%) also are among the top gainers, as copper prices climb to their highest in four months on speculation that China will announce more steps to boost growth.
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) also heads for its seventh straight gain, the stock's longest winning run in two years.
Thu, Mar. 3, 8:55 AM
- Freeport McMoRan (NYSE:FCX) -2.9% premarket after UBS downgrades shares to Neutral from Buy with a $9 price target following a 30% rise during the past week.
- UBS points out that hurdles to recovery remain in place despite strong YTD execution; the recent rise in copper prices has been a welcome reprieve but the firm notes that FCX is highly vulnerable as a levered producer.
- UBS says FCX also needs to navigate ongoing discussions in Indonesia to secure its future at Grasberg, and to achieve considerable success on asset sales to achieve its $5B-10B medium term debt reduction target.
Fri, Feb. 26, 9:17 AM
- Gainers: RRM +49%. SUNE +31%. AMTG +31%. SGMS +27%. STMP +26%. GOL +19%. SPLK +17%. JCP +16%. HLF +13%. BIDU +11%. SYN +10%. GLBL +8%. WLL +9%. FCX +7%. CHK +7%. PANW +8%. NRF +6%. TCK +6%. MRO +6%. KHC +6%. GRPN 5%. HLT 5%.
- Losers: RJET -83%. PPHM -60%. CARA -36%. WTW -28%. SWN -14%. GG -11%. FOLD -9%. RBS -8%. MNKD -6%. ARI -5%.
Freeport-McMoRan, Inc. engages as copper, gold and molybdenum mining company. The company operates through five segments: North America Copper Mines, South America Copper Mines, Africa Mining, Indonesia Mining, and Molybdenum Mining. The North America Copper Mines segment operates seven open-pit... More
Sector: Basic Materials
Country: United States
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